Home / Business and Economy / Cabinetry Titans MasterBrand and American Woodmark Merge in $3.6B Deal
Cabinetry Titans MasterBrand and American Woodmark Merge in $3.6B Deal
6 Aug
Summary
- MasterBrand and American Woodmark to merge in all-stock deal
- Combined company valued at $3.6 billion, including debt
- Merger expected to boost earnings by second year, save $90M annually
In a move to consolidate the highly fragmented building products sector, U.S. cabinetry manufacturers MasterBrand Inc. and American Woodmark Corp. announced on August 6, 2025 that they will merge in an all-stock deal. The combined company will be worth $3.6 billion, including debt.
The merger comes as the housing market is poised for a resurgence, with expectations that the Federal Reserve will lower interest rates, reviving demand for new homes and renovations. The U.S. is currently facing a record shortage of 4.7 million homes, according to a July 2025 analysis by Zillow. Additionally, the building sector is expected to grow, supported by aging housing stock, short supply, and increased commercial and infrastructure development funded by the $1.2 trillion Infrastructure Investment and Jobs Act.
Under the deal, each share of American Woodmark will be exchanged for 5.15 shares of MasterBrand, giving MasterBrand a 63% ownership stake in the combined company. The transaction is expected to close in early 2026 and is anticipated to boost earnings by the second year, with estimated annual savings of $90 million by the third year.
